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M/s. Amar Travels India. Versus Commissioner of Service Tax, Delhi

2017 (10) TMI 505 - CESTAT NEW DELHI

Business Auxiliary services - Levy of Service tax - commission received from M/s. Amadeus India Pvt. Ltd. for use of CRS - Held that: - the issue has already been decided by this Tribunal in the case of D. Pauls Consumer Benefit Ltd. Vs. CCE New Delhi [2017 (3) TMI 1019 - CESTAT NEW DELHI], where on similar issue it was held that the service provided by the assessee-Appellants has rightly been covered under the heading “Business Auxiliary Service” as defined u/s 65(19) of the FA, 1994 - demand u .....

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nt services - the services rendered by sub-agent is also the same and it cannot be different from that of air travel agent services - similar view taken in the case of Commissioner Vs. Zuari Travel Corporation [2013 (7) TMI 911 - CESTAT MUMBAI] - demand set aside. - Appeal allowed in part. - Service Tax Appeal No.58209 of 2013 - ST/A/56421/2017-CU[DB] - Dated:- 5-9-2017 - Mr. (Dr.) Satish Chandra, President And Mr. V. Padmanabhan, Member (Technical) Shri A K Batra and Ms. Vibha Narang, Advoc .....

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eus India Pvt. Ltd. By using such software, the appellant arranges international air ticket booking for customers. The appellant is receiving commission from M/s. Amadeus India Pvt. Ltd. Revenue is of the view that such commission received is chargeable to Service Tax under the category of Business Auxiliary services as the appellant is promoting the business of M/s. Amadeus India Pvt. Ltd. 2. The appellant is also receiving commission from International Air Tickets Association (IATA) on booking .....

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nt and demand of service tax amounting to ₹ 33,96,623/- was confirmed on the appellant along with interest and penalties under various sections of Finance Act, 1994. Aggrieved by the impugned order, the present appeal has been filed. 3. With this background, we have heard Shri A K Batra, with Ms. Vibha Narang, learned Advocate for the appellant and Shri Amresh Jain, learned DR for the Department. 4. The main grounds of appeal are: (a) (i) Appellant is using the CRS provided by M/s. Amadeus .....

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Appellant and other Air travel agents; (iv) However, the relationship of the Appellant with M/s. Amadeus is of a client who purchases the products of the company; as such there can be no promotion activity either directly or indirectly by the client. No promotional activity under Business Auxiliary Services gets attracted in the absence of three parties; (iv) The incentives so received did not amount to any kind of commission for alleged promotional activity, but was an incentive / rewards provi .....

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) There is no agency relationship between the IATA agents among themselves; (iv) The word commission used is a misnomer. It is a discount shared among the agents upon the purchase of air tickets upon the last price. (v) Moreover, service tax on the full basis fare is already paid hence, non-payment of tax on the discount portion is unsustainable (vi) Revenue neutral situation. 5. Learned Counsel for the appellant reiterated the grounds and relied on various case laws to support the above argumen .....

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above decision of the Tribunal, we uphold the demand of service tax under the category of Business Auxiliary services in respect of commission received from M/s. Amadeus. 9. Next we turn to the issue of commission received from other IATA agents. 10. The submission of the appellant is that they are purchasing the tickets from IATA agents on principal to principal basis and therefore, the commission received falls under the category of Business Auxiliary services. It has further been submitted t .....

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